The Interpublic Group of Companies Inc. (NYSE:IPG) Relative Strength Index (RSI) is 68.10, with weekly volatility at 1.98% and ATR at 0.73. The IPG stock’s 52-week price range has touched low of $15.92 and a $33.76 high. Intraday shares traded counted 3.72 million, which was 10.78% higher than its 30-day average trading volume of 4.17M. Its shares traded higher over the last trading session, gaining 0.89% on 06/01/21. The shares fell to a low of $33.715 before closing at $33.99. IPG’s previous close was $33.69 while the outstanding shares total 391.50M. The firm has a beta of 1.05, a 12-month trailing P/E ratio of 30.65, and a growth ratio of 2.17.
Investors have identified the Advertising Agencies company The Interpublic Group of Companies Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $13.23 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
The Interpublic Group of Companies Inc. (IPG) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For IPG, the company has in raw cash 2.02 billion on their books with 545.9 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on a decline. In terms of their assets, the company currently has 7.77 billion total, with 7.98 billion as their total liabilities.
IPG were able to record -278.1 million as free cash flow during the 07/27/2021 quarter of the year, this saw their quarterly net cash flow reduce by -492.7 million. In cash movements, the company had a total of -249.8 million as operating cash flow.
Potential earnings growth for The Interpublic Group of Companies Inc. (IPG)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 07/27/2021 quarter of the year, The Interpublic Group of Companies Inc. recorded a total of 2.26 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -4.55% coming in sequential stages and their sales for the 07/27/2021 quarter reducing by -12.98%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 1.92 billion trying to sell their products during the last quarter, with the result yielding a gross income of 341.7 million. This allows shareholders to hold on to 391.50M with the recently reported earning now reading 0.24 cents per share. This is a figure that compared to analyst’s prediction for their 07/27/2021 (0.45 cents a share).
Having a look at the company’s valuation, the company is expected to record 2.31 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on IPG sounds very interesting.
Is the stock of IPG attractive?
In related news, Director, GUILFOILE MARY sold 12,075 shares of the company’s stock in a transaction that recorded on May 27. The sale was performed at an average price of 33.45, for a total value of 403,909. As the sale deal closes, the Executive Chairman, ROTH MICHAEL ISOR now sold 100,000 shares of the company’s stock, valued at 3,249,000. Also, Executive Chairman, ROTH MICHAEL ISOR sold 144,781 shares of the company’s stock in a deal that was recorded on Mar 01. The shares were price at an average price of 26.85 per share, with a total market value of 3,887,370. Following this completion of acquisition, the EVP & General Counsel, Bonzani Andrew now holds 8,103 shares of the company’s stock, valued at 217,647. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.60%.
7 out of 12 analysts covering the stock have rated it a Buy, while 4 have maintained a Hold recommendation on The Interpublic Group of Companies Inc.. 0 analysts has assigned a Sell rating on the IPG stock. The 12-month mean consensus price target for the company’s shares has been set at $33.09.